The active power line conditioner (APLC) is considered to be a very ef
ficient type of active power filter that compensates the voltage wavef
orm distortion caused by nonlinear loads in power systems. A new appro
ach is based on a previously presented two-level algorithm, the three-
phase optimal harmonic power flow (TOHPF), to investigate the determin
ation of locations and sizes of three-phase (3 phi) APLCs. The objecti
ve is to minimise the new APLC investment cost, the 3 phi, voltage dis
tortion, and the system 3 phi MW losses while satisfying the 3 phi pow
er flow equations, 3 phi harmonic power flow equations, 3 phi security
constraints, and the harmonic standard. The master level of TOHPF det
ermines the compensator/tap settings and the new APLC locations/sizes;
the slave level of TOHPF includes subproblems which involve cases of
fundamental and harmonic frequencies separately. Test results for an 1
8-bus distribution system show the applicability of the proposed metho
d.